100-Metodos-de-Qualidade-Total

ANALYTICAL METHODS
85
Method 34
Departmental cost of quality
Purpose
To provide a financial measure of the quality performance of an organization.
When to use
Either at the beginning of a total quality process to establish the need for
change or later when identifying opportunities for improvement.
How to use
Departmental cost of quality identifies three specific cost areas:
1 Prevention The cost. associated with planning, training and writing
procedures associated with doing it right first time.
2 Appraisal The cost of checking and testing to find out whether it has
been done right first time.
3 Failure The cost, internal or external, associated with failure to do it
right first time.
These costs are calculated in two distinct ways. First, the hard, or
accounts, costs in each category:
Prevention e.g. training courses, preventive maintenance.
2 Appraisal e.g. depreciation of test equipment and inspection contracts.
3 Failure e.g. scrap, re-work, warranty.
All of these costs are directly identified from accounts information.
Secondly, the soft, or people, costs in each category:
1 Prevention e.g. percentage of people's time spent on training, writing
procedures, planning etc.
2 Appraisal e.g. percentage of people's time spent on checking, testing
etc.
3 Failure e.g. percentage of people's time spent on re-work, handling
failure in all its forms.
All of these are estimated either directly or as part of an estimate including
normal work (see Table 1). These estimates are then converted to cost by
using average departmental cost figures from accounts.
Benefits
Identifying the departmental cost of quality in an organization can have
several benefits: